Over the lifetime of your ownership of a property, there may well come a point where you face the decision of moving home or remodeling it. It is not uncommon to buy your ‘forever home’ thinking it is and will be perfect for your needs for years to come only to find out that it no longer suits all of your requirements several years in. Perhaps you have expanded your family or your teens with all their friends take up more space than you anticipated. Perhaps you need more space to work from home or indulge in a new hobby. Whatever the reason your family home is no longer practical you will find yourself facing a decision you may have never wanted to make. Are you better off expanding your family home or upping sticks and buying a new one?
It is a hard question to answer and a decision only you can make but to help you with the decision process consider these pointers below to help you weigh up the pros and cons of each option.
Finances
One of the biggest dictating factors will be the financial repercussions of either a move or renovations. Firstly how much will it cost to renovate your property to the standard and spec you want it to be? You need to have a clear idea of the amount the modeling is likely to cost and whether you can realistically afford it. If not, do you need to re-mortgage some of your current property to carry out the desired work? Renovations can get costly and you want to avoid finding yourself in a situation where you have overspent on a renovation and outpriced yourself in terms of the value of your house. Some properties will have a ceiling value no matter how high-end and desirable the renovation work may be. That said if you plan to live in that house for many many years to come and the renovations are for you to enjoy then are you that concerned about outpricing yourself? It may well be a risk you are willing to take as the benefits outweigh the potential drawbacks.
You also need to consider the state of the housing market, is now a good time to be buying and importantly selling? House prices may be high at the time you are looking to sell but that also means you will be paying top money for the next property you intend to buy. Real estate is an ever-changing marketplace with highs and lows for buyers and sellers and it is worth consulting with a real estate agent over your options and valuations when considering your next steps. Don’t forget to take into account any monies owed on your current mortgage and whether you will have to, or even can, increase upon it when purchasing a new property.
Both renovating and buying and selling have associated costs so be sure to budget for them all very carefully before making your decision. Often, buying a family home can be highly driven by emotions and what you think you want but it is important not to lose sight of the financial repercussions or even potential investment you could be making with your decisions.
Effort level
Whichever route you take will require considerable amounts of effort and associated stress. Undergoing remodeling requires instructing professionals potentially architects, plumbers, builders, surveyors, decorators, and so on. You may need to obtain permits and you always need to budget for a contingency fund in case something goes wrong. Not only is this an added expense but added stress also. You must also bear in mind that you have to live with ongoing building work for what could turn out to be a long period of time. Are you able to manage without a kitchen and live with copious amounts of dust? Opting to stay in your property and commit to an extensive build certainly isn’t the easy option.
That said buying and selling property isn’t always straightforward either. You have the pressure to find the right property for you at the right price and ensure you are the one who gets it. You also need to be sure you are getting the appropriate price for the property you are selling. This can often involve entering into grueling and stressful negotiations with no guarantee you will get what you want to from them. If you do make it past this stage you then have to get through the legal hurdles, paperwork, and administrative requirements when buying a house. Finally, if you get through all of that you have the big task of packing up all of your worldly belongings and moving them from one property to another.
Think carefully about what each option will look like in reality and consider whether you have it in you to undertake a house expansion or relocation.
Location
When it comes to your dream home one of the biggest factors is always the location, especially with a family. If you are already in a great location do you really want to leave it? Are you currently in a good school district or are your kids settled in a school? What about friends and family, or your neighbors? If relocating would involve a compromise on the location such as changing schools or being further away from amenities is it really worth it for that perfect property? It may be that for your lifestyle and enjoyment you are better off staying in the location you know and love, taking the plunge, and converting your house into the home you want it to be.
Don’t rush it
Whether you extend or sell it is a big decision that will impact your finances and your lifestyle for the entire family. It is not a decision that should be made lightly, or alone. Sit and discuss everything thoroughly with your family, children included. Ask them for their opinion and listen to the answer. Ultimately everybody needs to sign off on a decision like this so you want to be sure you are all on the same page and happy with the outcome.
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